Which of the Following Statements Is True

question 159

Multiple Choice

Which of the following statements is true?

• A)Publicly traded U.S.companies must provide an annual report to their shareholders when operating conditions change significantly.
• B)An unqualified independent auditor's report must be included in the annual report.
• C)Notes to the financial statements do not need to be included in the annual report because that information is only for internal users.
• D)None of these answer choices are correct.

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Definitions:

Management By Exception

A management strategy where only significant deviations from planned results are brought to the attention of management, focusing efforts on areas that are not performing as expected.

Standard Costs

Preset costs established for the manufacture of a product, including direct materials, direct labor, and overhead expenses, against which actual costs are compared.

Fixed Overhead Cost Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead incurred.

Variance Analysis

The process of examining differences between actual and budgeted/expected financial performance and investigating the causes.